Ch20 Key MKT101

Principles of Marketing, 14e (Kotler)
Chapter 20 Sustainable Marketing: Social Responsibility and Ethics
1) ________ calls for meeting the present needs of consumers and businesses while also
preserving or enhancing the ability of future generations to meet their needs.
A) Sustainable marketing
B) Innovation
C) Consumerism
D) Environmentalism
E) The strategic planning concept
Answer: A
Diff: 2 Page Ref: 582
AACSB: Ethical Understanding and Reasoning Abilities
Skill: Concept
Objective: 20-1
2) All of the following are concepts that define the needs of consumers and/or businesses
EXCEPT which one?
A) marketing concept
B) societal marketing concept
C) strategic planning concept
D) sustainable marketing concept
E) consumer business concept
Answer: E
Skill: Concept
Objective: 20-1
3) The ________ is specifically focused on future company needs.

A) societal marketing concept
B) strategic planning concept
C) sustainable marketing concept
D) marketing concept
Answer: B
Skill: Concept
Objective: 20-1
1
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4) The ________ is specifically focused on the future welfare of consumers.
A) strategic planning concept
B) sustainable marketing concept
C) societal marketing concept
D) consumer business concept
E) marketing concept
Answer: C
Skill: Concept
Objective: 20-1
5) McDonald's "Plan to Win" strategy has added healthy food options to its menu, phased out
traditional artery-clogging trans fats, launched a major multifaceted education campaign, and
addressed environmental issues. "Plan to Win" best exemplifies which concept?
A) sustainable marketing concept
B) marketing concept
C) societal marketing concept
D) strategic planning concept
Answer: A
Skill: Concept
Objective: 20-1
6) Many critics charge that the American marketing system causes ________ to be higher than
they would be under more "sensible" systems.
A) imports
B) exports
C) prices
D) product safety measures
E) employee morals
Answer: C
Skill: Concept
Objective: 20-2
2
7) Critics charge that intermediaries ________.
A) are too few in number
B) are inefficient
C) provide only necessary services
D) underprice their services
E) are too competitive
Answer: B
Skill: Concept
Objective: 20-2
8) A long-standing charge against intermediaries is that they mark up prices beyond the
________.
A) value of their services
B) delivery charges
C) going market price
D) promotion cost
E) resale value
Answer: A
Skill: Concept
Objective: 20-2
9) Marketers respond to charges of high advertising and promotion costs that unnecessarily
increase retail prices by arguing all of the following factors EXCEPT which one?
A) Advertising and promotion make consumers feel wealthy.
B) Advertising and promotion make consumers feel attractive.
C) Advertising and promotion adds quality to the product.
D) Advertising and promotion adds value by informing potential buyers of the availability and
merits of a brand.
E) Advertising and promotion is necessary for a firm to match competitors' efforts.
Answer: C
Diff: 3 Page Ref: 584-585
Skill: Concept
Objective: 20-2
3
10) Critics point out that in the drug industry, a pill that costs five cents to make may cost the
consumer $2 to buy. This is an example of which of the following?
A) deceptive advertising
B) redlining
C) excessive markups
D) high-pressure selling
E) shoddy products
Answer: C
Skill: Concept
Objective: 20-2
11) Deceptive practices fall into three groups: deceptive ________, deceptive ________, and
deceptive ________.
A) product; pricing; promotion
B) pricing; promotion; placement
C) pricing; promotion; packaging
D) packaging; product; promotion
E) product; packaging; placement
Answer: C
Skill: Concept
Objective: 20-2
12) Deceptive promotion differs from deceptive pricing in that deceptive promotion overstates
the product's ________ or ________.
A) true price; performance
B) features; performance
C) packaging; costs
D) brand; package contents
E) availability; package contents
Answer: B
Skill: Concept
Objective: 20-2
4
13) A major step in regulating "unfair or deceptive business acts and practices" was the
enactment of the ________ in 1938.
A) Robinson-Patman Act
B) Wheeler-Lea Act
C) Interstate Commerce Commissions
D) Taft-Hartley Act
E) Stamp Act
Answer: B
Skill: Concept
Objective: 20-2
14) Advertising "puffery" is a term for ________.

A) a straightforward promotional message
B) innocent exaggeration for effect
C) emotional appeals to consumers
D) subliminal appeals to consumers
E) value-added promotions
Answer: B
AACSB: Communication Abilities
Skill: Concept
Objective: 20-2
15) When critics claim that insurance, real estate, and used cars are sold, not bought, they are
making accusations of the use of ________.
A) deceptive promotions
B) excessive markups
C) high-pressure selling
D) shoddy products
E) excessive materialism
Answer: C
Skill: Concept
Objective: 20-2
5
16) ________ persuades people to buy goods they had no thought of buying.
A) Sustainable marketing
B) High-pressure selling
C) Strategic marketing
D) Redlining
E) Reverse redlining
Answer: B
Skill: Concept
Objective: 20-2
17) In which of the following scenarios would high-pressure selling tactics typically be most
advantageous for marketers?
A) selling situations with long-time customers
B) selling situations with new customers with a high likelihood of becoming repeat customers
C) selling situations with a company's most highly valued customers
D) one-time selling situations
E) selling situations with dissatisfied customers
Answer: D
Skill: Concept
Objective: 20-2
18) Critics have charged that some companies intentionally manufacture their products with
materials or components that cause the product to need to be replaced before it actually should
need replacement. What is this called?
A) product failure
B) short-term planning
C) planned obsolescence
D) nonfunctional warranty
E) expressed dissatisfaction
Answer: C
Skill: Concept
Objective: 20-2
6
19) Planned obsolescence and perceived obsolescence might involve all of the following
EXCEPT ________.
A) the use of unsafe materials
B) producers continually changing consumer styles
C) the holding back of attractive functional features, then introducing them later to make older
models obsolete
D) the use of materials that will rust sooner than they should
E) the use of components that will break soon after purchase
Answer: A
Skill: Concept
Objective: 20-2
20) Marketers respond to charges of planned obsolescence with all of the following EXCEPT
which one?
A) Consumers like change.
B) No one is forced to buy the new product.
C) The product will eventually wear out anyway.
D) For most technical products, customers want the latest innovations.
E) Companies do not want to lose customers to other brands.
Answer: C
Skill: Concept
Objective: 20-2
21) Critics claim that companies in the ________ industries introduce planned streams of new
products that make older models obsolete, a form of planned obsolescence that harms
consumers.
A) car and truck
B) housing and construction
C) food and beverage
D) consumer electronics and computer
E) financial and entertainment
Answer: D
Skill: Concept
Objective: 20-2
7
22) Critics who believe that the American marketing system poorly serves disadvantaged
consumers claim that the ________ pay more for inferior goods because their shopping options
are limited.
A) wealthy
B) uneducated
C) urban poor
D) rural middle class
E) suburban middle class
Answer: C
Skill: Concept
Objective: 16-2
23) When major chain retailers avoid placing stores in disadvantaged neighborhoods, they are
likely to be accused of the discriminatory practice of ________.
A) embargo
B) licensing
C) redlining
D) puffery
E) scrambling merchandise
Answer: C
Skill: Concept
Objective: 20-2
24) Critics claim that mortgage lenders used ________. Instead of staying away from people in
poor urban areas, they targeted and exploited them by steering them toward subprime loans even
though many qualified for safer fixed-rate loans.
A) reverse redlining
B) redlining
C) puffery
D) licensing
E) the push strategy
Answer: A
Skill: Concept
Objective: 20-2
8
25) Critics of the American economic marketing system have charged that marketers have
created a culture in which people are judged by what they ________.
A) are
B) own
C) do
D) eat
E) avoid
Answer: B
Skill: Concept
Objective: 20-2
26) Bill Talen, also known as the Reverend Billy, leader of the Church of Stop Shopping, wants
people to resist the temptation to shop. He annually leads a group of volunteers in his post-
Thanksgiving Buy Nothing Parade in front of Macy's in Manhattan. Bill Talen is criticizing the
American marketing system for creating ________.
A) too few social goods
B) environmental problems
C) shoddy products
D) false wants and too much materialism
E) predatory competition
Answer: D
Skill: Concept
Objective: 20-2
27) Critics say marketing is seen as benefiting ________ more than ________.
A) consumers; industry
B) industry; consumers
C) stores; manufacturers
D) exporters; importers
E) independent sellers; chain stores
Answer: B
Skill: Concept
Objective: 20-2
9
28) Our wants and values are LEAST influenced by which of the following?
A) family
B) education
C) religion
D) cultural background
E) intermediaries
Answer: E
Skill: Concept
Objective: 20-2
29) It is most accurate to say that recent recession has resulted in which of the following?
A) an overselling of private goods
B) a widespread disbelief in the possibility of achieving the American dream
C) a decline in conspicuous spending
D) an increase in materialism
E) the elimination of false wants
Answer: C
Skill: Concept
Objective: 20-2
30) Marketers are most effective when they appeal to ________ rather than when they ________.
A) exciting new inventions; use old ones
B) teenagers; target older people
C) existing wants; attempt to create new ones
D) emotions; appeal to actual needs
E) the mass market; appeal to market segments
Answer: C
Skill: Concept
Objective: 20-2
31) The high failure rate of new products shows that companies are not able to ________.
A) control demand
B) advertise enough
C) find manufacturers
D) find outlets
E) identify consumer needs
Answer: A
Skill: Concept
Objective: 20-2
10
32) The overselling of private goods results in ________, such as cars causing traffic jams, air
pollution, injuries, and deaths.
A) cultural pollution
B) misdirected funding
C) social costs
D) materialism
E) opportunity expenses
Answer: C
Skill: Concept
Objective: 20-2
33) For cars, "social costs" include all of the following EXCEPT ________.
A) traffic congestion
B) air pollution
C) gasoline shortages
D) congestion tolls
E) traffic accidents
Answer: D
Skill: Concept
Objective: 20-2
34) Cultural pollution could be referred to as ________.

A) commercial noise
B) air pollution
C) language barriers
D) a marketer's inability to identify a target market
E) redlining
Answer: A
Skill: Concept
Objective: 20-2
11
35) All of the following are examples of cultural pollution EXCEPT ________.
A) commercials during serious programs
B) ads in magazines
C) street signs in an urban area
D) billboards marring beautiful scenery
E) spam in an e-mail inbox
Answer: C
Skill: Concept
Objective: 20-2
36) In response to charges of ________, marketers point out that advertising makes much of
television and radio free to users and also keeps down the cost of magazines and newspapers.
A) too few private goods
B) creating false wants
C) creating too much materialism
D) high promotion costs
E) cultural pollution
Answer: E
Skill: Concept
Objective: 20-2
37) Large marketing companies can use patents and heavy promotion spending to ________.
A) acquire smaller companies
B) bear the social costs of their operations
C) set up barriers for others wanting to enter the industry
D) achieve economies of scale
E) offset cultural pollution
Answer: C
Skill: Concept
Objective: 20-2
12
38) All of the following are potential advantages of acquisition EXCEPT which one?
A) The acquiring company can gain economies of scale.
B) Acquisitions require little government oversight.
C) An acquiring company may improve the efficiency of an acquired company.
D) An industry might become more competitive after an acquisition.
E) The acquisition may result in lower costs, leading to lower prices for consumers.
Answer: B
Skill: Concept
Objective: 20-2
39) Setting prices below cost, threatening to cut off business with suppliers, and discouraging the
purchase of a competitor's products are all examples of ________.
A) routine competition
B) excessive materialism
C) predatory competition
D) acquisitions
E) barriers to entering a market
Answer: C
Skill: Concept
Objective: 20-2
40) The two major citizen movements to keep business in line are environmentalism and
________.
A) consumerism
B) protectionism
C) antimonopoly legislation
D) interstate commerce
E) innovation
Answer: A
Skill: Concept
Objective: 20-3
13
41) ________ is an organized movement of citizens and government agencies to improve the
rights and power of buyers in relation to sellers.
A) Environmentalism
B) The Bill of Rights
C) Grassroots politics
D) Consumerism
E) The Human Relations Movement
Answer: D
Skill: Concept
Objective: 20-3
42) All of the following are traditional sellers' rights EXCEPT ________.
A) the right to charge any price for the product
B) the right to spend any amount to promote the product, provided it does not involve unfair
competition
C) the right to promote any product to any audience
D) the right to use any buying incentive programs, provided they are not unfair
E) the right to introduce any product in any size and style, provided it is not hazardous
Answer: C
Skill: Concept
Objective: 20-3
43) Consumer advocates call for all of the following additional consumer rights EXCEPT
________.
A) the right to be protected from unwanted marketing messages
B) the right to be well informed about important product aspects
C) the right to be protected against questionable products and marketing practices
D) the right to influence marketing practices in ways that will improve the quality of life
E) the right to influence products in ways that will improve the quality of life
Answer: A
Skill: Concept
Objective: 20-3
14
44) Proposals related to the consumer's right to ________ include controlling the ingredients that
go into certain products and packaging as well as reducing the level of advertising "noise."
A) not buy a product that is offered for sale
B) expect the product to perform as claimed
C) be well informed about important aspects of the product
D) be protected against questionable marketing practices
E) influence products and marketing practices in ways that will improve the "quality of life"
Answer: E
Skill: Concept
Objective: 20-3
45) Proposals related to the consumer's right to be informed include knowing all of the following
EXCEPT ________.
A) unit pricing
B) ingredient labeling
C) nutritional labeling
D) product freshness (open dating)
E) product safety
Answer: E
Skill: Concept
Objective: 20-3
46) Proposals ________ include promoting the use of sustainable ingredients, recycling and
reducing solid wastes, and managing energy consumption.
A) related to the right to be informed
B) related to consumer protection
C) related to preserving the world for future consumption
D) relating to quality of life
E) related to the right to charge any price for the product
Answer: C
Skill: Concept
Objective: 20-3
15
47) ________ is an organized movement of concerned citizens, businesses, and government
agencies to protect and improve people's living environment.
A) Consumerism
B) Environmentalism
C) Social responsibility
D) Enlightened marketing
E) Sense-of-mission marketing
Answer: B
Skill: Concept
Objective: 20-3
48) Environmentalists assert that the marketing system's goal should be to maximize ________.
A) consumer protection
B) consumer satisfaction
C) life quality
D) consumer choice
E) consumption
Answer: C
Skill: Concept
Objective: 20-3
49) The ________ in the United States came about because of concern for the loss of the
atmosphere's ozone layer, toxic waste, litter, and the damage caused by strip mining and forest
depletion.
A) first wave of modern environmentalism
B) second wave of modern environmentalism
C) current wave of environmentalism
D) second wave of consumerism
E) first wave of enlightened marketing
Answer: A
Skill: Concept
Objective: 20-3
16
50) ________ is a management approach that involves developing strategies that both sustain the
environment and produce profits for the company.
A) Consumerism
B) New clean technology
C) Environmental sustainability
D) Social responsibility
E) Ethical decision making
Answer: C
Skill: Concept
Objective: 20-3
51) Companies emphasizing ________ are developing "green marketing" programs that develop
ecologically safer products, recyclable and biodegradable packaging, more energy-efficient
operations, and better pollution controls.
A) pollution prevention
B) product stewardship
C) "beyond greening"
D) new clean technology
E) sustainability vision
Answer: A
Skill: Concept
Objective: 20-3
52) All of the following are choices for internal and external "greening" and "beyond greening"
activities EXCEPT ________.
C) consumerism
D) new clean technology
Answer: C
Skill: Concept
Objective: 20-3
17
53) Nike produces PVC-free shoes, recycles old sneakers, and educates young people about
conservation, reuse, and recycling. Nike is using the most basic level of environmental
sustainability known as ________.
C) new clean technology
D) "beyond greening"
E) redlining
Answer: A
Skill: Concept
Objective: 20-3
54) All of the following are components of "green marketing" EXCEPT ________.
A) making ecologically safer products
B) cradle-to-cradle practices
C) recycling
D) biodegradability
E) pollution controls
Answer: B
Skill: Concept
Objective: 20-3
55) Minimizing pollution from production and all environmental impacts throughout the full
product life cycle is called ________.
A) green marketing
B) greening
C) product stewardship
D) environmental sustainability
E) pollution prevention
Answer: C
Skill: Concept
Objective: 20-3
18
56) ________ involves thinking ahead in the design stage to create products that are easier to
reuse, recycle, or recover.
A) Pollution control
B) Design for environment (DFE)
C) Consumerism
D) Societal marketing
E) Strategic planning
Answer: B
Skill: Concept
Objective: 20-3
57) Companies can develop ________, which serves as a guide to the future. It shows how the
company's products and services, processes, and policies must evolve and what new technologies
must be developed to get there.
A) new clean technology
B) a cradle-to-cradle practice
C) pollution prevention
D) product stewardship
E) a sustainability vision
Answer: E
Skill: Concept
Objective: 20-3
58) As international trade barriers come down and global markets expand, environmental issues
are having ________ impact on international trade.
A) a neutral
B) a uniform
C) a decreased
D) a greater
E) a stabilizing
Answer: D
AACSB: Dynamics of the Global Economy
Skill: Concept
Objective: 20-3
19
59) The philosophy of ________ holds that a company's marketing should support the best long-
run performance of the marketing system.
A) corporate social responsibility
B) environmentalism
C) the sustainable marketing concept
D) the free enterprise system
E) consumer-oriented marketing
Answer: C
Skill: Concept
Objective: 20-4
60) All of the following are sustainable marketing principles EXCEPT ________.
A) consumer-oriented marketing
B) customer-value marketing
C) innovative marketing
D) value marketing
E) societal marketing
Answer: D
Skill: Concept
Objective: 20-4
61) Jacob Engineering Group views and organizes its marketing activities from the viewpoint of
its buyers. Management works hard to sense, serve, and satisfy the needs of its well-defined
group of buyers. What does Jacob Engineering Group practice?
A) consumer-oriented marketing
B) societal marketing
C) sense-of-mission marketing
D) customer-value marketing
E) innovative marketing
Answer: A
Skill: Concept
Objective: 20-4
20
62) Which sustainable marketing principle requires that a company continuously seek real
product and marketing improvements?
A) consumer-oriented
B) innovative
C) customer-value
D) sense-of-mission
E) market-oriented
Answer: B
Skill: Concept
Objective: 20-4
63) Some firms define their purpose in narrow product terms. Others that define their purpose in
broad social terms follow ________.
A) societal marketing
B) sense-of-mission marketing
C) consumer-oriented marketing
D) customer-value marketing
E) consumerism
Answer: B
Skill: Concept
Objective: 20-4
64) When a company makes marketing decisions by considering consumers' wants and interests,
the company's requirements, and society's long-run interests, it is practicing ________
marketing.
A) value
B) societal
C) sense-of-mission
D) consumer-oriented
E) customer-value
Answer: B
Skill: Concept
Objective: 20-4
21
65) What are deficient products?
A) products that have neither immediate appeal nor long-run benefits
B) products that give high immediate satisfaction but only hurt consumers in the long run
C) products that have low appeal but may benefit consumers in the long run
D) products that are either unsafe or inferior
E) products in the decline stage of the product life cycle
Answer: A
Skill: Concept
Objective: 20-4
66) A company that makes products that give high immediate satisfaction but may hurt
consumers in the long run makes ________ products.
A) deficient
B) pleasing
C) salutary
D) desirable
E) threatening
Answer: B
Skill: Concept
Objective: 20-4
67) ________ products give both high immediate satisfaction and high long-run benefits.
A) Deficient
B) Pleasing
C) Desirable
D) Salutary
E) Threatening
Answer: C
Skill: Concept
Objective: 20-4
68) Examples of pleasing products include ________.

A) cigarettes and junk food
B) dental services and medications
C) seat belts and air bags
D) fruits and vegetables
E) bicycle helmets and elbow pads
Answer: A
Skill: Concept
Objective: 20-4
22
69) Which of the following is the best example of a desirable product?
A) healthy and delicious breakfast food
B) cigarettes
C) effective but bad-tasting medicine
D) junk food
E) dental insurance
Answer: A
Skill: Concept
Objective: 20-4
70) In societal marketing, the ideal goal for companies is to turn all of their products into
________ ones.
A) salutary
B) desirable
C) pleasing
D) durable
E) serviceable
Answer: B
Skill: Concept
Objective: 20-4
71) The challenge for makers of which type of product is to add long-run benefits without
reducing the product's pleasing qualities?
A) salutary
B) desirable
C) pleasing
D) durable
E) deficient
Answer: C
Skill: Concept
Objective: 20-4
23
72) The challenge for makers of which type of product is to add some pleasing qualities so that it
will become more desirable in the consumers' minds?
A) salutary
B) desirable
C) pleasing
D) durable
E) aesthetic
Answer: A
Skill: Concept
Objective: 20-4
73) Baker Enterprises produces several new products that have low appeal but may benefit
consumers in the long run. What is the most accurate classification of these products?
A) deficient
B) pleasing
C) salutary
D) desirable
E) unpleasing
Answer: C
Skill: Concept
Objective: 20-4
74) Monica Carey is a conscientious marketing manager. Sometimes it is unclear what decisions
to make when she and her staff are faced with moral dilemmas. Monica and other managers
could create broad guidelines that everyone in the organization must follow in the form of
________.
A) a company value statement
B) a company mission statement
C) a company vision statement
D) corporate marketing ethics policies
E) a financial statement
Answer: D
Skill: Concept
Objective: 20-5
24
75) The American Marketing Association (AMA) has created a code of ethics that includes all of
the following ethical values EXCEPT ________.
A) honesty
B) fairness
C) transparency
D) competitiveness
E) respect
Answer: D
Skill: Concept
Objective: 20-5
76) Dan's Drugstore sells consumers medicine for twenty dollars that only costs two dollars to
make. The store is guilty of ________.
A) deceptive promotion
B) deceptive packaging
C) false advertising
D) excessive markups
E) redlining
Answer: D
Skill: Application
Objective: 20-2
77) Albatross Enterprises was accused of deceptive pricing. Which of the following explains
what might have happened?
A) Albatross refused to advertise sale prices in the local paper.
B) Albatross lured customers to the store for a bargain that is out of stock.
C) Albatross advertised a large price reduction from a phony high retail list price.
D) Albatross misrepresented a product's features in an ad.
E) Albatross used misleading labeling.
Answer: C
Skill: Application
Objective: 20-2
25
78) Hart's Department Store was accused of deceptive promotion. Which of the following best
explains what might have happened?
A) Hart's refused to advertise sale prices in the local paper.
B) Hart's advertised a bargain price on a product that is out of stock.
C) Hart's advertised a large price reduction from a phony high retail list price.
D) Hart's used misleading labeling.
E) Hart's exaggerated its package contents through subtle design.
Answer: B
Skill: Application
Objective: 20-2
79) Which of the following advertising situations would LEAST likely be considered "puffery"?
A) Mr. Clean coming to a housewife's rescue
B) instantly toned thighs and legs as a result of using the Thigh Master for only 15 minutes
C) children immediately growing into attractive adults as a result of drinking milk
D) a retired couple drinking a vitamin and protein shake and then going bicycling
E) a sleepy mom who wakes up to a gray day, drinks a cup of coffee, and then looks out her
window to see golden sunshine, beautiful flowers blooming, songbirds singing, and a rainbow on
the horizon
Answer: D
AACSB: Reflective Thinking Skills
Skill: Application
Objective: 20-2
80) Recently, a class-action lawsuit was brought against McDonald's, charging that its food has
contributed to the nationwide obesity epidemic. The suit was eventually dismissed, but many
critics continue to point out the health dangers of typical "fast food" menu items. These critics
are concerned that the fast food industry has used ________.
A) high-pressure selling
B) deceptive promotions
C) deceptive pricing
D) deceptive packaging
E) harmful products
Answer: E
Skill: Application
Objective: 20-2
26
81) All of the following would be considered hazards in tested products EXCEPT ________.
A) electrical dangers in appliances
B) carbon monoxide poisoning from room heaters
C) injury risks from lawn mowers
D) faulty automobile design
E) sour-tasting medicine
Answer: E
Skill: Application
Objective: 20-2
82) The following quote best describes ________. "The marvels of modern technology include
the development of a soda can which, when discarded, will last forever, and a...car, which when
properly cared for, will rust out in two or three years."
A) planned obsolescence
B) product failure
C) deceptive promotions
E) excessive markups
Answer: A
Skill: Application
Objective: 20-2
83) Trendy Teens manufactures fashionable clothing and accessories for the tween and teen
female markets. New merchandise with a very different look is rolled out each season and
heavily promoted as the "must-have" style in a variety of media. Trendy Teens could most easily
be criticized for which of the following?
A) deceptive promotions
B) shoddy products
D) poor service to disadvantaged consumers
E) perceived obsolescence
Answer: E
AACSB: Analytic Skills
Skill: Application
Objective: 20-2
27
84) TerraPass is a company that offers consumers the opportunity to buy carbon offsets, which
are contributions to projects that combat global warming by reducing carbon emissions.
TerraPass offers contribution packages for driving, flying, and home energy use. Through
TerraPass, consumers can pay some of the ________ costs of their private goods and services.
A) promotional
B) safety
C) health
D) distribution
E) social
Answer: E
Skill: Application
Objective: 20-2
85) Karl Lagaros, a marketing critic, is concerned about the pervasiveness of marketing. He
points to advertising messages everywhere, from Web sites and e-mails to unwanted direct mail
and catalogs to television commercials and product tie-ins to billboards and store signage. Karl is
concerned about ________.
A) high packaging costs
B) cultural pollution
C) deceptive practices
D) false wants and too much materialism
E) the balance between private goods and social goods
Answer: B
Skill: Application
Objective: 20-2
86) ABC, Inc. is currently designing a new product line with the goal of making each product
easy to recover, reuse, or recycle. ABC, Inc. hopes to recover many of these products when they
reach the end of their life cycle and reuse components in new products. ABC, Inc. is in the
________ stage of environmental sustainability.
B) new clean technology
C) product stewardship
D) beyond greening
Answer: C
Skill: Application
Objective: 20-3
28
87) Xerox Corporation's Equipment Remanufacture and Parts Reuse Program converts end-of-
life office equipment into new products and parts. This not only helps sustain the environment,
but it is also highly profitable for the company. Such a practice is known as ________.
B) green marketing
C) a sustainability vision
D) design for environment (DFE)
E) new environmental technology
Answer: D
Skill: Application
Objective: 20-3
88) After Sony and Microsoft kicked the Mario out of Nintendo's GameCube in the Video Game
War of 2001, the smallest of the three game platform makers needed a new plan. The resulting
Wii system, with its intuitive motion-sensitive controller and interactive games, appealed not
only to teen boys but also to their sisters, moms, dads, and even grandparents. The system
immediately outsold both the PlayStation 3 and Xbox 360. This is a successful example of
________ marketing.
A) consumer-oriented
B) innovative
C) customer-value
D) societal
E) sense-of-mission
Answer: B
Skill: Application
Objective: 20-4
89) Timberland employees get 40 hours paid leave each year to pursue volunteer projects. The
company runs a service day that hosts projects in 25 countries, and it supports a nonprofit that
brings young people into public service for a year. CEO Jeffrey Swartz sees such service as a
powerful differentiator for Timberland with its current and potential customers. Timberland
could be most accurately described as practicing ________.
A) consumerism
B) environmental sustainability
C) a sustainability vision
D) innovative marketing
E) sense-of-mission marketing
Answer: E
Skill: Application
Objective: 20-4
90) Dove wanted to do more than just sell its beauty care products. The company was on a quest
29
to discover "real beauty" and help women be happy just the way they are. As a result, the Dove
Campaign for Real Beauty was successfully launched in 2004. Dove was practicing which type
of marketing?
A) sense-of-mission
B) consumer-oriented
C) customer-value
D) innovative
E) social
Answer: A
Skill: Application
Objective: 20-4
91) Dales Drugstore sells cough medicine that is sour and ineffective. This is an example of a
________ product.
A) societal
B) pleasing
C) salutary
D) deficient
E) desirable
Answer: D
Skill: Application
Objective: 20-4
92) Maytag's front-loading Neptune washer provides superior cleaning and energy efficiency.
The Neptune washer is an example of a ________ product.
A) deficient
B) pleasing
C) salutary
D) desirable
E) nondurable
Answer: D
Skill: Application
Objective: 20-4
30
93) Companies must decide what principle they should use as a guide on issues of ethics and
social responsibility. All of the following are common philosophies to accomplish this end
EXCEPT which one?
A) Let the free market decide.
B) Let the legal system decide.
C) Let society decide.
D) Let individual managers decide.
E) Let individual companies decide.
Answer: C
Skill: Application
Objective: 20-5
94) A heavily promoted brand of flu medicine sells for much more than a virtually identical
store-brand product. Critics would likely charge that promotion for the branded flu medicine
adds only ________ to the product rather than functional value.
A) consistency
B) strength
C) psychological value
D) quality
E) informational value
Answer: C
Skill: Critical Thinking
Objective: 20-2
95) A federal agency ordered KFC to stop running ads with false claims that its fried chicken is
compatible with certain weight loss programs. Which agency had the authority to issue this
order?
A) the Federal Trade Commission
B) the Food and Drug Administration
C) the Consumer Product Safety Commission
D) the Environmental Protection Agency
E) the American Marketing Association
Answer: A
Skill: Synthesis
Objective: 20-2
31
96) The success of the Tom Dennis Ford dealership has been built largely on return customers
and word-of-mouth recommendations. The majority of sales are made to customers who have
purchased a vehicle at the dealership before or who know someone who had a positive
experience purchasing a vehicle there. The sales force at the Tom Dennis Ford dealership most
likely knows that using high-pressure selling does not work if the dealership wants to ________.
A) achieve short-term gains
B) move last year's models
C) obey local and federal law
D) build long-term relationships with customers
E) maintain a database
Answer: D
Objective: 20-2
97) Several companies, some of them operating through the Internet, offer "paycheck advances."
Consumers are encouraged to take out a loan against a paycheck they expect to receive in the
near future. These short-term loans with high-interest rates, and high penalties for late payments,
are often marketed to consumers who do not have traditional bank accounts. These companies
could most easily be criticized for which of the following?
A) shoddy products
B) poor service to disadvantaged consumers
D) high advertising and promotion costs
E) excessive markups
Answer: B
Objective: 20-2
98) A company that produces and heavily markets cigarettes, with many promotions aimed at
young (although legal age) nonsmokers, most likely follows which of the following as a guiding
principle?
A) the philosophy that companies should have a social conscience
B) the philosophy that companies can do in good conscience whatever the market and legal
systems allow
C) the philosophy of environmentalism
D) the philosophy of consumer-oriented marketing
E) the philosophy of consumerism
Answer: B
Objective: 20-5
32
Refer to the scenario below to answer the following questions.
Bryant and Aniyah Small are the owners of the Good Green Grocer, a small but successful chain
of natural food and health stores. Bryant and Aniyah's business has expanded as more and more
consumers are interested in eating organic foods. What started as one shop in Vermont has
expanded to 15 stores in college towns throughout Vermont, New Hampshire, Massachusetts,
and Maine. Much to their delight, the Smalls have found that many people are willing to pay a
bit more for food that is organically grown.
Bryant and Aniyah want the Good Green Grocer to be associated with environmental
responsibility, so they offer discounts to customers who bring their own reusable shopping bags
and take measures to reduce the company's carbon footprint. They even hold environmental
workshops in their stores, with topics ranging from organic farming and composting to at-home
energy conservation.
Sunday ads for the Good Green Grocer run in area newspapers, with special promotional prices
offered for a list of the "Top Ten Take Homes" each week. Regular customers of the Good Green
Grocer know that the promotional items often run out of stock by mid-week, so the store
typically sees its heaviest traffic on Sunday and Monday.
99) Some customers believe that the Good Green Grocer purposefully runs weekly promotional
prices on items that are low in stock, leaving most customers who come to the store hoping for
lower prices but unable to buy the out-of-stock sale items. If this is true, then the Good Green
Grocer would most likely be accused of ________.
A) using puffery
B) deceptive pricing
C) deceptive promotions
E) green washing
Answer: C
Skill: Application
Objective: 20-2
100) Which of the following actions, if taken, would violate the AMA's Code of Ethics?
A) the Good Green Grocer raising its prices on its popular items
B) the Good Green Grocer advertising that its products will help people "feel healthy"
C) the Good Green Grocer lowering prices in order to better compete with larger supermarkets
D) the Good Green Grocer labeling as "organic" products that were grown using pesticides
E) the Good Green Grocer contributing a percentage of its profits to NGOs
Answer: D
Skill: Synthesis
Objective: 20-5
33
101) Sustainable marketing calls for meeting the present needs of consumers and businesses
while also preserving or enhancing the ability of future generations to meet their needs.
Answer: TRUE
Skill: Concept
Objective: 20-1
102) The major criticisms of marketing include harming consumers through high prices,
deceptive practices, high-pressure selling, shoddy or unsafe products, planned obsolescence, and
poor service to disadvantaged countries.
Answer: TRUE
Skill: Concept
Objective: 20-2
103) Consumers can rarely buy functional versions of highly promoted branded products at
lower prices.
Answer: FALSE
Skill: Concept
Objective: 20-2
104) When responding to consumer complaints about high prices, marketers often explain that
consumers do not understand the costs involved that justify the prices.
Answer: TRUE
Skill: Concept
Objective: 20-2
105) Though marketers may make long-term gains with high-pressure selling tactics, this
approach can do serious damage to short-term customer relationships.
Answer: FALSE
Skill: Concept
Objective: 20-2
106) A common accusation aimed at consumer advertising is that it makes people buy things
they don't need.
Answer: TRUE
Skill: Concept
Objective: 20-2
34
107) Critics of marketing view consumer interest in material things as a natural state of mind and
a matter of false wants created by marketing.
Answer: FALSE
Skill: Concept
Objective: 20-2
108) Many marketers have been accused of overselling private goods at the expense of public
goods. Many of these private goods require more public services that are usually not
forthcoming.
Answer: TRUE
Skill: Concept
Objective: 20-2
109) Because some people view business as the cause of many economic and social ills,
movements have arisen to keep business in line. The two major movements have been
consumerism and effective marketing.
Answer: FALSE
Skill: Concept
Objective: 20-3
110) Both citizens and government agencies are part of the consumerism movement.
Answer: TRUE
Skill: Concept
Objective: 20-3
111) Each basic consumer right has led to more specific proposals from consumerists, such as
nutritional and ingredient labeling.
Answer: TRUE
Skill: Concept
Objective: 20-3
35
112) Whereas environmentalists consider whether the marketing system is efficiently serving
consumer wants, consumerists are concerned with marketing's effects on the environment and
with the environmental costs of serving consumer needs and wants.
Answer: FALSE
Skill: Concept
Objective: 20-3
113) The management strategy of environmental sustainability focuses on developing ways to

sustain the environment while also producing profits.
Answer: TRUE
Skill: Concept
Objective: 20-3
114) Sustainable marketing consists of five principles: consumer-oriented marketing, customer-

value marketing, innovative marketing, sense-of-mission marketing, and societal marketing.
Answer: TRUE
Skill: Concept
Objective: 20-4
115) Sunset Lawn Service puts most of its resources into value-building marketing investments.
The management at Sunset is practicing customer-value marketing.
Answer: TRUE
Skill: Concept
Objective: 20-4
116) A company that makes marketing decisions by considering consumers' wants and long-run
interests, the company's requirements, and society's long-run interest must be practicing
consumer-oriented marketing.
Answer: FALSE
Skill: Concept
Objective: 20-4
36
117) In consumer-oriented marketing, a company defines its mission in broad social terms rather
than narrow product terms.
Answer: FALSE
Skill: Concept
Objective: 20-4
118) When a company views and organizes its marketing activities from only the consumer's
point of view, it is practicing societal marketing.
Answer: FALSE
Skill: Concept
Objective: 20-4
119) When a company chooses what principle to follow on issues of ethics and social
responsibility, there are two common philosophies to use as guides: let the free market and legal
system decide or let individual mangers and companies choose.
Answer: TRUE
Skill: Concept
Objective: 20-5
120) A company must lower its ethical standards to successfully conduct business in countries
with lower standards.
Answer: FALSE
Skill: Concept
Objective: 20-5
121) In the progress toward environmental sustainability, a company typically first strives for
pollution prevention and product stewardship before developing "beyond greening" plans.
Answer: FALSE
Skill: Application
Objective: 20-3
37
122) New World Food Supplements continuously seeks real product and marketing
improvements for its line of vitamin and protein supplements. Obviously, New World is involved
in consumer-oriented marketing.
Answer: FALSE
Skill: Application
Objective: 20-4
123) Seatbelts are an example of salutary products.

Answer: TRUE
Skill: Application
Objective: 20-4
124) Xorbate Blue is a relatively new food supplement that provides both high immediate
satisfaction and high long-run benefits, such as improved energy levels and muscle tone. Xorbate
Blue is best classified as a pleasing product.
Answer: FALSE
Skill: Application
Objective: 20-4
125) Jones Toy Company has been accused of producing shoddy and unsafe children's toys. If
Jones is typical of most companies, the complaints will center on poorly trained labor.
Answer: FALSE
Objective: 20-2
38

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Principles of Marketing, 14e (Kotler)

Chapter 20 Sustainable Marketing: Social Responsibility and Ethics

3) The ________ is specifically focused on future company needs.

14) Advertising "puffery" is a term for ________.

34) Cultural pollution could be referred to as ________.

68) Examples of pleasing products include ________.

113) The management strategy of environmental sustainability focuses on developing ways to

114) Sustainable marketing consists of five principles: consumer-oriented marketing, customer-

123) Seatbelts are an example of salutary products.

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